Prices are rallying this morning on lower oil prices and hopeful news that a peace deal will finally happen. The belief is that the Strait of Hormuz will finally open for real this time, and if so, wall street thinks the markets will rally strongly. We will have to wait and see what happens, but the markets love this news so far and are rallying on a gap up this morning.
If the market turns lower or if something changes, there is a large overhead gap on the chart, and the target to fill that gap would be way down at 7498.50. That seems like a stretch to see that kind of a sell off, but stranger things have happened, so never say never. For now, the trend and bias are up, so stay with that as long as the rally continues. As always, we could see some mixed trading at times, so stay guarded when and if prices go into tight congestion.
